Medicare IRMAA Adjustment Question

[Marita40]

I'm getting some conflicting information regarding IRMAA. I start Medicare next month, and due to an income over $88,000 in 2019, when I was working, I will pay an increased amount for Part B. My question concerns how to lower the Plan B amount back to the standard amount now that my income has lowered upon retirement.


I retired in January 2021, so my income is now reduced as of 2021. Here's the conflicting information I've received from several sources. One source told me the reduction in the Plan B amount would happen automatically, because each year the government looks at your income two years prior to that year and makes an automatic adjustment. Another source said I had to file an appeal, but should do only when I have my 2021 taxes done and can attach tax evidence (Note: my 2021 taxes will not be done until February or March 2022, so I currently don't have this evidence). Finally, I called the SS Federal Office today and the nice lady said I have 60 days starting now (I just got the IRMAA letter) to file a form to get an adjustment, otherwise the window is permanently closed. I told her I don't have tax evidence yet, and she said I just need to attach a retirement letter from my former employer indicating a major life change.



So I will follow the SS person's advice, but wonder if anyone can verify it from your own experience. Thanks!

 

[SecondCor521]

No personal experience, but from what I've read from others here in earlier threads:

Your IRMAA will automatically drop in 2023 when Social Security receives your 2021 tax return information. Your 2024 IRMAA will depend on your 2022 tax return, and so on. This all happens automatically and is what will happen if you do nothing.

If you have a change in circumstances, such as retirement, you can file an appeal. There's an SS form for it which you should be able to google. I don't know what information is required, whether it's the retirement letter or the tax return. Attaching the tax return sounds suspect to me as a recommendation, because as you note by the time you have a tax return, you've already paid IRMAA for all of 2021 already. I'm not sure but I don't think they'd retroactively refund IRMAA to you.

I'd recommend finding that form and just attaching whatever documentation you have that the form requests, and send it in.

 

[ivinsfan]

if you do it by snail mail be sure to make a hard copy first..

 

[RetiredHappy]

If you want your IRMAA adjusted for this year, your projected 2021 income must in a lower IRMAA bracket than the income which was used for 2019. Yes, you file the appeal with your retirement letter. We did it for my husband and it was fairly painless. The painful part was that we had to go to the local office to get the appeal form as we could not find the form online. We then had to drop off the completed form back at the local office.

 

[Marita40]

Ok, I guess I was conflating two things so thanks for the advice. I now understand: 1) I should submit the appeal now with my retirement letter; and 2) in future years, SS will automatically adjust the Part B cost by looking back two years to my income. I had thought it was one or the other. Thank you!

 

[RetiredHappy]

Ok, I guess I was conflating two things so thanks for the advice. I now understand: 1) I should submit the appeal now with my retirement letter; and 2) in future years, SS will automatically adjust the Part B cost by looking back two years to my income. I had thought it was one or the other. Thank you!

Yes and Yes.

 

[TN Jim]

I had to file an appeal twice after retiring, one for each year. SS didn't auto correct for second year. I filed same info the second time. Be sure to include a retirement notice to employer or a copy of letter from employer acknowledging retirement. No need for tax papers. SS does ask for estimate of income for current year.

 

[RetiredHappy]

I had to file an appeal twice after retiring, one for each year. SS didn't auto correct for second year. I filed same info the second time. Be sure to include a retirement notice to employer or a copy of letter from employer acknowledging retirement. No need for tax papers. SS does ask for estimate of income for current year.

Good reminder. Yes we had to file an appeal the second year as well.